The UK Monetary Conduct Authority (FCA) has introduced that, from October 8, retail traders will as soon as once more be allowed to entry crypto exchange-traded notes (ETNs), marking a coverage shift after greater than 4 years of restrictions.
The choice displays what the regulator describes as an evolution in market maturity and investor understanding.
UK FCA ban on retail buying and selling in Bitcoin ETFs lifted on 8 October. It’s going to be huge. https://t.co/45OZRO9vmw
— Charlie Morris (@AtlasPulse) August 1, 2025
Retail Buyers Regain Entry to ETNs
In a press launch, the FCA confirms that retail shoppers will be capable to spend money on crypto ETNs, supplied the merchandise are traded on an FCA-recognised, UK-based funding alternate—often called a Recognised Funding Alternate (RIE).
These corporations shall be required to adjust to UK monetary promotion guidelines, making certain shoppers obtain clear and truthful data with out being misled by aggressive advertising ways.
“Since we restricted retail entry to cETNs, the market has advanced, and merchandise have grow to be extra mainstream and higher understood. In gentle of this, we’re offering shoppers with extra selection, whereas making certain there are protections in place,” stated David Geale, govt director of funds and digital finance on the FCA.
The FCA made it clear that though crypto ETNs will grow to be out there to retail traders, protections such because the Monetary Companies Compensation Scheme (FSCS) won’t apply. Shoppers might want to assess the dangers themselves, with corporations sure by the Client Obligation to behave of their shoppers’ finest pursuits.
Regulatory Progress in Crypto Oversight
This transfer types a part of the FCA’s effort to construct out a workable regulatory framework for cryptoassets within the UK. It follows the publication of proposals on stablecoin regulation and broader crypto market oversight. The regulator’s roadmap seeks to create structured entry to digital property with out encouraging dangerous conduct.
Regardless of lifting the restriction on ETNs, the FCA confirms that its ban on retail entry to cryptoasset derivatives will stay in place.
The company reiterated its dedication to monitoring the evolving surroundings of high-risk investments, adjusting its strategy based mostly on developments in product security, investor conduct, and world regulation.
From Ban to Reform: A Gradual Coverage Shift
The FCA initially imposed a ban on the sale, advertising, and distribution of crypto derivatives and ETNs to retail shoppers in January 2021.
By March 2024, nonetheless, the FCA shared a softer stance by permitting recognised funding exchanges just like the London Inventory Alternate to listing crypto ETNs for skilled traders.
That softening continued into June 2025, when the regulator opened a session to discover lifting the ban for retail shoppers. With the newest rule change, the UK joins different world monetary facilities in re-evaluating the position of retail entry to crypto-linked monetary merchandise below clearer guidelines and improved investor protections.
Business Reacts to FCA Coverage Shift
Laurent Kssis, CEO of CEC Capital, a long-standing professional in crypto ETPs, welcomes the FCA’s resolution, calling it a long-overdue step towards aligning with worldwide requirements.
“The FCA’s transfer to permit retail entry to crypto ETNs on UK exchanges marks a serious turning level. It brings the UK in step with world finest practices—one thing I, together with many retail traders, have been advocating for,” stated Kssis.
Drawing on his expertise managing regulated crypto merchandise throughout Europe, he added: “We’ve seen how a powerful regulatory framework can provide refined publicity to crypto whereas nonetheless prioritizing investor safety.”
Kssis describes the shift as a transformative second for the UK market. “Till now, the 2021 retail ban successfully shut UK traders out of the regulated crypto funding wave that’s swept throughout Europe and the US. Many have been left with little selection however to both miss out or flip to unregulated, riskier choices.”
He additionally praises the FCA’s requirement that solely recognised funding exchanges—such because the London Inventory Alternate—can listing these merchandise.
“This ensures institutional-grade transparency and oversight that retail merchants merely don’t get when accessing crypto straight,” he stated. “Mixed with the Client Obligation framework and stricter monetary promotion guidelines, this construction presents extra safety than most present retail crypto platforms.”
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